What is the weighted mean comparable cap rate

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The following capitalization rates for comparable properties were collected in the marketplace. Comparables most similar to the subject property were given higher weights:

Comparable Capitalization Rate (%) Weight

A 9.45 10%

B 9.82 30%

C 10.46 20%

D 10.25 20%

E 9.72 20%

Sum of weights = 100%

a. What is the weighted mean comparable cap rate?

b. If the subject property has a net operating income of $99,800. What would its market value be?

Reference no: EM132818094

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